Get a quote


Join Our Distribution List Today!

Need help managing your business risks during COVID-19? – CLICK HERE FOR INFO YOU CAN USE
ALIGNED Insurance

Call Toll Free

How Wholesale and Distribution Insurance Protects Your Business

Wholesale & Distribution
ONLINE Commercial insurance
Want to buy ONLINE Commercial insurance now?
Click HERE to get coverage now!

End-to-end coverage. As a wholesaler and/or distributor, your job is the logistics of getting products where they need to be when they need to be there. You need an insurance policy that protects those products and your business every step of the way. Whether your company focuses on sourcing and getting the products into the hands of retailers who need them, supplying resellers and educating them on direct-from-manufacturer products or some combination of both, the risks you face are the same. Wholesale and distribution insurance coverage provides comprehensive coverage to manage those risks in the same way you oversee your shipments – by knowing what pitfalls lie ahead and navigating around them. 

In this post, we explain what a wholesale and distribution insurance policy is and how it protects wholesale and distribution companies.

Wholesale and Distribution Insurance
Looking for Wholesale and Distribution Insurance? Click HERE to get a quote now!

Key Information On the Wholesale and Distribution Industry   

The Government of Canada defines wholesalers this way:

“Wholesale merchants buy and sell merchandise on their own account, that is, they take title to the goods they sell. 

They generally operate from warehouse or office locations and they may ship from their own inventory or arrange for the shipment of goods directly from the supplier to the client. 

In addition to the sale of goods, they may provide, or arrange for the provision of, logistics, marketing and support services, such as packaging and labelling, inventory management, shipping, handling of warranty claims, in-store or co-op promotions, and product training. 

Wholesale merchants are known by a variety of trade designations depending on their relationship with suppliers or customers, or the distribution method they employ. Examples include wholesale merchants, wholesale distributors, drop shippers, rack-jobbers, import-export merchants, buying groups, dealer-owned cooperatives and banner wholesalers.”

And here are the latest stats from the Government of Canada regarding wholesale trade:

  • There are approximately 100,131 wholesale trade businesses in Canada
  • 97.7% of them have less than 100 employees
  • Average annual revenue is $815,700 with 76% of wholesalers being profitable
  • GDP increased by 0.8% in the last recorded year
  • Net revenue in the wholesale trade industry was $49 billion with total expenses reaching $1 trillion in the last recorded year

What Does Wholesale and Distribution Insurance Cover?

The following are insurance coverages we recommend for wholesale and distribution companies. Click on the links for more information about typical wholesale and distribution insurance.

Product Liability Insurance to protect your wholesale and distribution company from manufacturing flaws, design defects etc. in the products you supply that may cause bodily injury and/or property damage to others.

Commercial General Liability Insurance which covers you in the event of bodily injury on your property and/or property damage to others, false advertising, libel/slander claims based on your business practices.

Property Insurance for your warehouse and/or office which protects them and the contents (i.e. stock/inventory etc.) inside them from perils such as fires, flooding, windstorms etc. 

Accounts Receivable Insurance that protects your wholesale and distribution company’s profitability in case political unrest in a country you do business in leads to losses or a supplier or purchaser goes bankrupt, for example.

Cargo Insurance protects your business from losses stemming from loss or damage of cargo, stock throughput risks and supply chain/trade disruption, among several other shipping risks to cargo.

Commercial Auto Insurance / Commercial Vehicle Insurance for trucks and other transport vehicles.

Crime Insurance / Fidelity Insurance to protect your wholesale and distribution company from employee theft and other forms of fraud and dishonesty.

Cyber Liability & Privacy Insurance because more and more, every business needs to protect itself from the massive losses that can occur from a cyber breach.

How Much does Wholesale & Distribution Insurance Cost?

The important thing to remember when it comes to wholesale and distribution insurance is that it is customizable to fit your business needs. How much you pay for wholesale and distribution insurance will depend on a number of factors including:

  • The type of products you sell
  • Where your products are manufactured and by whom
  • Where you sell your products to. ex. Canadian vs. US.
  • How much inventory you keep on hand
  • Annual sales
  • Where your business is located
  • Value of your building
  • Physical features of the warehouse being used
  • Attributes of the product

among other factors. You may want to speak with one of our business insurance specialists to go over the specifics of your wholesale and distribution business for a free quote.

ALIGNED, Business Insurance Experts Who Know the Logistics of Risk Management

Our advocates leverage their experience, knowledge and relationships with Canada’s top insurers to get your wholesale and distribution business seamless, end-to-end coverage at affordable rates. Get started by using our online tool or contact us for a free quote on wholesale and distribution insurance.

Other Posts Related To Wholesale and Distribution Insurance

We’re here to help you find the BEST commercial insurance…
Our team of insurance brokers is available to help answer any and all questions you might have about all of our commercial insurance products. If you have a question about business insurance, are uncertain about what a particular insurance coverage term means, or simply want to find commercial insurance that directly aligns with your needs, don’t hesitate to call us toll-free at 1-866-287-0448.

It’s time to get your insurance aligned. Want Canadian business insurance that’s ALIGNED with your bottom line? We can help. 365. Call us toll-free at 1-866-287-0448.

We’re ALIGNED across Canada. The ALIGNED Insurance National Operations Centre in Cambridge, Ontario supports our Toronto, Calgary and Vancouver offices. We’re proud our industry peers consistently recognize ALIGNED Insurance as one of the best insurance teams in the country. We are also very proud to be one of the fastest growing insurance brokerages in Canada.

We deliver e-news you can use. Get practical business insurance insights in your inbox. 12,000+ people subscribe to our free ALIGNMENT Matters e-news. Just click the JOIN OUR DISTRIBUTION LIST button – at the bottom of our homepage – to connect and learn more about us.

365 | Get ALIGNED. Every day, Canadian business leaders follow our insurance insights via @ALIGNEDonRisk, on FacebookLinkedIn and watch our YouTube videos here!

Leave a Reply

Your email address will not be published. Required fields are marked *